Sufism is an esoteric school of Islam that developed in the early era of Islamic history, even during the lifetime of Prophet Muhammad, with the objective of spiritual instruction and self-purification. This study examined the impact of Sufism in our society in present days qualitative study design was used and Grounded Theory (GT) was used for coding the data and developing the therapeutic model. Focus group discussion was used to gather information about how Sufism has psychological impacts in our daily routine matters and how much Sufism is embedded in our society. Focus group was conducted on four students of B.A/ B.Sc. (Hons.) final semester and four scholarly teacher of Government College University Lahore who have knowledge about Sufism and also personally experience the impacts of Sufism. Theoretical model which developed by using GT method is identified the social, psychological, spiritual and political impact of Sufism on Pakistani society in 21st century.